May 12, 2008 – Polaris Digest
PG&A Warehouse Expansion Completed
Polaris Industries has recently completed expanding its warehouse in Vermillion, S.D., company officials say.
Polaris added 128,000 square feet to the facility to provide additional capacity for its PG&A business.
The Vermillion PG&A distribution center, which was 256,000 square feet before the expansion, was built in 1997. Since then, Polaris has more doubled its PG&A business.
At the time the Vermillion expansion was announced, Polaris said the enlarged facility would absorb the support role of a separate distribution facility in Winnipeg, Manitoba. That facility was scheduled to close this summer, according to a company press release.
Snowmobile Orders Meet, Slightly Exceed Expectations
Company officials say Polaris Industries’ 2009 snowmobile product line has received early positive responses from consumers and dealers alike.
President Bennett Morgan says the company’s North American dealer orders for 2009 will meet or slightly exceed the company’s expectations. The company now expects its year-end snowmobile sales to be up in the low double-digit range in terms of percentage growth, Morgan says.He also noted early consumer response to the new product line was “also very encouraging.”
Retail Outlets, Distribution System Addressed
Polaris Industries addressed two dealer issues during its conference call with stock analysts for its first-quarter report.
The issues deal with the manufacturer’s distribution system and whether it would consider extending its traditional network of dealers to include big-box retail stores. On the latter subject, company CEO Tom Tiller said Polaris “has looked at this several times during the last several years” and each time has concluded that sticking with independent dealers represents the best opportunity for the company.
On the distribution question, President Bennett Morgan says Polaris is testing a new wholesale system that would allow for dealer orders to be taken on a much more frequent basis. Although Morgan would not provide specifics on the program, he did say Polaris is in the early stages of testing this distribution system and has plans to do a more significant test in the second quarter. psb
